Month: May 2011

  • Are you paying too much for a patent?

    Are you still paying $10,000 (or more!) for your patent attorney to prepare and file a patent application for your invention? Pardon me while I sound like a teenager – but that is “so 90’s.”

    I remember when I started working as a patent agent and then as a patent attorney in the late 1990’s and early 2000’s. The typical quote for preparing and filing a very basic US patent application was $8,000, plus costs to have a draftsman prepare professional drawings (translation – add another $500 to $1,000), plus government filing fees (translation – add another $500). Many patent law firms charged for long distance telephone calls, postage, copies, and support staff time. It was common practice for a single patent application to cost $10,000 or more. And I worked at small and medium size law firms.

    This was back when dockets (code name for patent attorney deadline calendars) were usually written on paper calendars – or for the really advanced, using an Microsoft Outlook Calendar (or similar). Conflicts checks were maintained manually using 3×5 index card files – or again for the really advanced, using a Microsoft Word document (or similar).

    Most patent attorneys barely understood how to use a computer, much less how to prepare their own drawings. The patent attorney would sketch out drawings using a pencil and paper and fax the sketches to their draftsman. The patent attorney still had their support staff taking dictation. Revisions were using a red pen and then returned to the draftsman or support staff to make updates. Some patent law firms still used type-writers!

    Anything that had to be filed with the US Patent Office had to be filed using the US Post Office Express Mail Service, and the Express Mail envelope had to be taken to the US Post Office and signed by a postal employee. A postcard itemizing everything in the Express Mail envelope had to be included, so that a clerk at the US Patent Office could check off everything listed on the postcard to make sure it was actually included in the Express Mail envelope, and then mail the approved postcard back to the patent attorney.

    If the patent attorney didn’t receive the approved postcard back within about one month, the patent attorney would have to follow-up with a written status inquiry to the US Patent Office. If the Express Mail envelope was never received, there was an entire process for proving the patent application was actually filed. Yes, this actually happened at least one time that I can remember. The process of proving we filed the patent application included getting an affidavit from the US postal employee.

    Even when all went as planned, physical copies of everything had to be made for the client’s records, and for the client’s file at the patent attorney’s office. Then a formal cover letter had to be prepared (typically by the support staff and signed by the patent attorney after one or two revisions) on official stationary and mailed to the client via the postal service.

    As you can probably tell, preparing and filing a patent application was a very time consuming process, and in order to pay for all this overhead and still make a living, the patent attorney had to charge $10,000 or more for a single patent application.

    But times have changed. Today, patent attorneys know (or should know) how to use a computer to prepare their own documents. And fairly complex drawings can be easily prepared and revised,  by patent attorney, using fairly inexpensive computer graphics software. All filings with the US Patent Office are electronic via a secure Internet site.

    Paper files are no longer necessary. Files can easily be maintained by the patent attorney in electronic format, and backed up securely, offsite, and fairly inexpensively. Correspondence can be entirely by email.

    In general, overhead has gone way down, and efficiency of the patent attorney has gone way up. What does this mean to you? In addition to the cost of having a patent attorney prepare and file a patent application being significantly less today than just 10 years ago, your patent attorney should also be able to communicate nearly instantaneously with you.

    For example, at Trenner Law Firm, we always send copies of all filing paperwork to the client, including copies of the patent application and electronic receipt from the US Patent Office, on the same day that we file a patent application with the US Patent Office. Need to know the status of your patent application. We can look that up electronically on the US Patent Office secure Internet site while you’re on the phone.

    A lot has changed since I started practicing. I’d say all for the better.

  • Wrong reasons to license your invention

    You have an idea, and you think its going to be the next big thing. If only you could find someone with the manufacturing and marketing expertise to get your invention in front of customers. Ideally, you’d like to get your invention on the shelves at Walmart or Home Depot, so you can makes tons of money for doing nothing and retire to the Caribbean.

    Of course, you file a patent application so that no one else can take your idea. Then you sit there and wait for an investor or mega-retailer to approach you. Unfortunately, this tact rarely works.

    Let’s say you find an investor and ask if the investor would like to license your invention. You supply the idea, and the investor does all the rest. Of course you only take a small cut of the profits. What are the first questions the investor is going to ask?

    Conversation with a potential investor. Have you protected your idea? Answer: no, I was hoping you would pay for a patent application. Have you made the product? Answer: no. How do you know that your idea will even work if you haven’t made the product? Answer: it should work. Is there a market for your product? Answer: I think so, because everyone I tell about my idea says they like it. Just because your family and friends say they like your idea, does not mean there is a market for the product.

    Bottom line, if you’re unwilling to invest any time or money, or take any risk with your idea, why should an investor be willing to do so?

    Another conversation with a potential investor. I did a patent search for my invention. There doesn’t appear to be anything like it in the market. I applied for a provisional patent application, so I have patent pending status and its going to be hard for anyone else to compete once I finish the patent process and have an issued patent. I built several prototypes of my invention, based on feedback from focus groups. I took the best prototype and made a product, which sold out on my website in less than a week. Conservative estimates based on these actual sales indicate that an investment of X dollars should result in a return of Y% within the first year. Investor: this sounds like a great opportunity. Let’s talk about an investment or licensing deal.

    All too often, inventors come up with great ideas and fail to pursue their ideas through to fruition. Not because the invention itself is a bad idea. But because they just don’t want to put the time and effort, or risk any money to take their invention out into the marketplace. Remember the old adage – nothing risked is nothing gained.

  • Run For The Door 5K Race

    Cindy, a paralegal and office manager at Trenner Law Firm, will be running in the Run For The Door 5K race in Denver on May 21. This race benefits the Open Door Ministries. Visit the Open Door Ministries website for more information or to donate.

    Trenner Law Firm, LLC is an intellectual property and business law firm, based in the Denver-metro area, with a main office in Evergreen, Colorado, and virtual office space available for meeting clients in many convenient locations throughout the front range. Trenner Law assists clients throughout the greater Rocky Mountain region and across the United States with patents, trademarks, and copyrights.